PQR has recently introduced an activity-based costing system.
It manufactures three products, details of which are given below.
The budgeted production overhead costs for the year are shown in table below:

What is budgeted machine set-up cost per unit of Product J?
Give your answer to the nearest cent.

Which costing method, used in just-in-time (JIT) production systems, attaches cost directly to output rather than following the flow of product through the production process?

Company Y absorbs fixed production overheads using a rate per machine hour. Budgeted and actual data for month 8 are as follows:

What is the fixed production overhead efficiency variance?

A company's markets are affected by fluctuating exchange rates. It is difficult to forecast more than two or three months ahead.
Which of the following budgeting systems would be most useful in this company's circumstances?

The labour requirement for a special contract is 250 skilled labour hours paid at $10 per hour and 750 semi-skilled labour hours paid at $8 per hour.
At present, skilled labour is fully utilised on other contracts which generate a $12 contribution per hour, after charging labour costs. Additional skilled labour is unavailable in the short term.
There is a surplus of 1,200 semi-skilled hours over the period of the contract but the firm has a policy of no redundancies.
The relevant cost of labour for the special contract is: